Yankees get into the e-sports game

The baseball club is investing in Vision Esports, which owns Rick Fox's gaming brand Echo Fox

The New York Yankees are investing in competitive video gaming, acquiring a stake in Echo Fox, the e-sports franchise owned by former NBA champion Rick Fox.

The investment is a part of a deal between the Yankees and Vision Esports, an investment vehicle set up earlier this year that contains Echo Fox; Twin Galaxies, a stats and rankings company; and Vision Entertainment, which produces e-sports video content.

The Major League Baseball team will receive a stake in all three, the Yankees said in a statement. Terms of the investment weren’t released.

The Yankees join a growing list of big-time sports teams buying into the rapidly expanding e-sports industry, where revenue is expected to pass $1 billion in the next few years, according to Newzoo, an e-sports analysis firm. Traditional sports owners, media companies and sponsors have rushed to gain a foothold as the market continues to grow.

Founded by the former Los Angeles Lakers player in January 2016, Echo Fox has 10 teams competing in titles such as Riot Games Inc.’s League of Legends, Warner Bros.’ Injustice 2, Nintendo Co.’s Super Smash Bros. and Bandai Namco’s Tekken 7.

Riot in the next few weeks is set to announce which 10 teams will be given permanent slots in its North American League of Legends series, an organization with set franchises, revenue sharing and a players association. Echo Fox will be awarded one of those highly-coveted slots, according to ESPN, a spot that costs $10 million.

The Yankees are valued at $3.7 billion, according to Forbes, making them the second most valuable sports franchise in the world, behind the Dallas Cowboys football team. Other Yankees investments include New York City Football Club, the Major League Soccer franchise that plays at Yankee Stadium; and Legends Hospitality, a stadium-management company created in 2008.